An Investigation of Video Experiment on Dynamic Bargaining Game

Wanbo Lu, Zhenxin Li, and Huihui Li

Abstract— Experimental economics has been became one of the most active areas in economics nowadays. Based on the data and copy from a video experiment on the dynamic bargaining game conducted at Sichuan University recently, this paper studies the factors influencing negotiating behavior, the hypothesis of rational economic man in the dynamic bargaining game experiment. Our experiment simulates the non-cooperative two-person characteristic function game. We find that the fairness and patience do impact the bargaining behavior in the experiment and the hypothesis of rational economic man is threatened to some extent. At most of time, economic man is bounded rationality, resulting in a deviation from the optimum strategy, challenging the classical game theory in a sense.